Try the Australian method. Raise interest rates with the hope that a lot of the population will have less money now and this will lead to spending habit changes that force prices down. That is bound to work especially when it comes to essentials like groceries. Actual outcome
That’s how literally every central bank works. If there’s too much money chasing not enough goods, you get inflation. The only way to solve it is to either make more things or reduce the amount of money. Central banks can’t do anything about the former, so they concentrate on the latter by raising interest rates.
Italian method is even better. Explicitly write on the annual budget law that a priority of all measures is to avoid any increase of salaries. Because it would “add inflation”. Italy has the lowest salaries in EU after Greece…
Inflation doesn’t come from employee salaries or wages. Inflation is an expansion of the currency, and the only thing that can increase the amount of currency is the central bank that generates it.
Try the Australian method. Raise interest rates with the hope that a lot of the population will have less money now and this will lead to spending habit changes that force prices down. That is bound to work especially when it comes to essentials like groceries. Actual outcome
https://www.sbs.com.au/news/article/how-are-big-banks-making-profits-in-a-cost-of-living-crisis/2kdw48sml
https://www.theguardian.com/australia-news/2023/dec/03/coles-and-woolworths-to-face-senate-scrutiny-amid-claims-of-profiteering
But yes it does mean that people have less money now.
Edit: fixed links
That’s how literally every central bank works. If there’s too much money chasing not enough goods, you get inflation. The only way to solve it is to either make more things or reduce the amount of money. Central banks can’t do anything about the former, so they concentrate on the latter by raising interest rates.
Italian method is even better. Explicitly write on the annual budget law that a priority of all measures is to avoid any increase of salaries. Because it would “add inflation”. Italy has the lowest salaries in EU after Greece…
Suppressing salaries as a response to unsustainable market dynamics is like eating rocks to help you swim upstream
Write it to Giancarlo Giorgetti, but I don’t think he would understand
Inflation doesn’t come from employee salaries or wages. Inflation is an expansion of the currency, and the only thing that can increase the amount of currency is the central bank that generates it.
Your hyperlinks point to “url” unless my app is busted.
Fixed.